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U.S. jobless claims data points to firming labor market

A job seeker fills out papers at a military job fair in San Francisco, California, August 25, 2015. The number of Americans filing new applications for unemployment benefits rose less than expected last week, remaining at levels consistent with a fairly healthy labor market. Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 259,000 for the week ended Oct. 17, the Labor Department said on Thursday. They remained not too far from levels last seen in late 1973. It was the 33rd straight week that claims were below the 300,000 threshold, which is normally associated with a firming jobs market. At current levels, there is not much scope for claims to fall further and the very low level of layoffs suggests the labor market remains in good shape, despite a recent abrupt slowdown in job growth. Signs that employers are holding on to their workers even […]

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North Dakota extends deadline to bring new oil wells online

Stacked rigs are seen along with other idled oil drilling equipment at a depot in Dickinson, North Dakota June 26, 2015. North Dakota regulators approved a plan on Thursday to give oil producers an extra year to bring a new well online, a change designed to give the energy industry breathing room during the crude price downturn. Oil producers will now have up to two years to hydraulically fracture, or frack, and start producing from a well that has been drilled. Under previous standards, producers had only one year. Each well must still receive individual approval. Nearly 1,000 wells in the state are nearing their one-year deadline and were in danger of being forcibly plugged by regulators. (Reporting by Ernest Scheyder ; Editing by Chizu Nomiyama )

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Exxon slams report for cherry-picking climate legacy

Exxon critical of climate reporting news website it says cherry-picked company information on climate track record. Photo by Katherine Welles/Shutterstock. IRVING, Texas, Oct. 22 (UPI) — U.S. supermajor Exxon Mobil took aim at climate activists for what the company said were inaccurate and misleading accounts of its position on climate issues. InsideClimate News has produced a series suggesting the energy company deliberately campaigned to cast doubt about the impacts of climate change even though its own scientists warned the issue may threaten its core business. Ken Cohen, Exxon’s vice president of public and government affairs, said the reporting was inaccurate and deliberately misleading . "These activists took those statements out of context and ignored other readily available statements demonstrating that our researchers recognized the developing nature of climate science at the time which, in fact, mirrored global understanding," he said in an emailed statement. Reporting from InsideClimate News drew […]

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Weatherford Plans 3,000 Additional Job Cuts

Weatherford plans to cut 3,000 additional jobs by the end of the year. Weatherford International plc plans on cutting an additional 3,000 jobs, the company revealed Wednesday. The oilfield services provider successfully completed its previously announced headcount reduction of 11,000 , according to its 3Q report. Weatherford stated it has now increased its workforce reduction target to 14,000, “with an increased focus on support positions to be completed by year end.” In addition to the job cuts, Weatherford has also closed five of its seven planned manufacturing and service facilities. The company said it will close one additional office by the end of the year and the remaining closure will occur in 2016. Weatherford has closed more than 70 operating facilities in North America through Sept. 30, with plans to close 90 by the end of 2015. Weatherford believes these efforts will “mitigate the effects of the downturn,” but […]

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Statoil boosts recovery at North Sea gas field

Norwegian energy company Statoil boosts recovery at key North Sea natural gas field by installing new compressors on the Troll A Platform, pictured. Statoil photo by Øyvind Hagen STAVANGER, Norway, Oct. 22 (UPI) — Norwegian energy company Statoil said boosting recovery rates at a North Sea natural gas field is a win for European energy security. The installation of two new compressors at the Troll A platform in the North Sea will increase recovery by as much as 2.9 trillion cubic feet. Vidar Helgesen, a Norwegian diplomat serving as the minister for European affairs, said the European energy market is undergoing an overhaul in terms of climate and competition. "Stable and competitive gas deliveries from the Norwegian continental shelf play a key role along these two axes," he said in a statement. "Higher production and flexibility from the Troll field is therefore good news to both Norway and Europe." […]

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Polish Refiner Turns to Saudi for Crude Amid Russian Dominance

Poland’s top refiner PKN Orlen SA will take delivery of its first crude from Saudi Arabia next month, a shipment that could mark the start of new trade relationship undermining the traditional dominance of Russian supplies. “The delivery may result in longer cooperation,” Chief Executive Officer Jacek Krawiec said at a conference in Warsaw on Thursday. Orlen’s largest refinery in Plock, which can process 16.3 million metric tons of crude annually, and its 10.2 million-tons-year Lithuanian facility could both use Saudi crude. Orlen is considering buying oil from Saudi Arabia and Iran as it seeks better terms amid a global supply glut. The refiner, which buys more than 90 percent of its crude from Russia, is also looking to renew two mid-term contracts that end in December and January with OAO Rosneft and Mercuria Energy Group Ltd. Rosneft CEO Igor Sechin questioned Saudi Arabia’s strategy of boosting output to […]

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Peak Oil Has Officially Peaked

The idea that we will use up all of the earth’s oil has just gone from extreme to ludicrous. According to a new report by BP plc (BP) , the oil game has significantly changed over the last few years. What you thought you knew about how the oil industry works is wrong. But that doesn’t mean we are in any worse shape than before. However, if you are even thinking about getting into today’s incredibly low-priced oil company’s stocks, you need to pay attention. BP’s report, titled "New Economics of Oil," lays out why conventional thinking about oil production and prices is all wrong. For starters, the "Beverly Hillbillies" idea of get-rich-quick oil finds is over. Oil is not something that is found in huge quantities that can be traditionally drilled for decades anymore. Geologists have gotten darn good at finding the big fields, leaving new ones in […]

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Oil falls after industry report shows surge in U.S. crude stocks

A technician of Cuba’s state-run CUPET works on an oil pump in Mayabeque province, Cuba, October 15, 2015. Oil prices fell on Wednesday after data from an industry group showed a larger-than-expected build in U.S. crude inventories last week, fanning worries over global oversupply, even as a slightly weaker dollar provided some support. Brent crude for December delivery had fallen 14 cents to $48.57 a barrel by 1.03 a.m. ET after settling up 10 cents in the previous session. U.S. crude for December delivery dropped 27 cents at $46.02 a barrel after settling up one cent at $46.29. The November contract, which expired on Tuesday, finished down 34 cents at $45.55 per barrel. "Concerns over the potential for a further build (in U.S. crude stocks) in official data (were driving prices lower)", said Michael McCarthy, chief market strategist at Sydney’s CMC Markets. "The low volumes and market moves are […]

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Bearish commodities face U-shaped recovery: DBS

A Development Bank of Singapore (DBS) logo in pictured in the backdrop of the central business district in Singapore July 10, 2015. The global commodities bear market is likely to experience only a U-shaped recovery as producers consolidate to shed excess capacity amid slower growth in China, Singapore’s DBS Bank said. "We are in the bottom shape of the U where it’s going to take a while to go through this cycle," Chean Wai Leong, head of commodity derivatives at DBS told the Reuters Commodities Summit. "We need more corrections on the supply side to cut back in both energy and base metals… Demand is going to be a slow story as well," she said. A supercycle in commodities ended last year as demand slowed in China, the world’s largest buyer of most raw materials, but producers ramped up output in the fight for market share. "A bear market […]

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World Bank outlook pushes oil lower

Crude oil prices move sharply lower after World Bank revises its full-year price forecast down by $5 per barrel. File photo by Monika Graff/UPI NEW YORK, Oct. 21 (UPI) — A downbeat oil market assessment from the World Bank and lingering signs of an oversupplied market pushed crude oil prices down sharply in Wednesday trading. In a late Tuesday report, the American Petroleum Institute reported U.S. crude oil inventories rose by a little more than 7 million barrels last week. The week prior, API said U.S. crude oil inventories increased by 9.3 million barrels. Data suggest slight improvements in the U.S. and global economies aren’t enough to draw on the surplus of oil in storage. In response, crude oil prices retreated sharply in early Wednesday trading. The price for Brent crude oil dropped 1 percent from the previous close to $48.21 per barrel, down about 2.7 percent for the […]

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Global Demand Growth for Oil May Fall by a Third in 2016

After hitting a five-year high in 2015, the global growth in demand for oil is expected to fall by about a third next year, adding further strain to an already oversupplied crude market . A 40% decline in the price of oil since last year has boosted demand, encouraging motorists, consumers and companies to top up. But the economic slowdown in China and elsewhere in Asia could sap that demand, according to analysts and big energy watchdogs. Just how far that growth in demand will fall is unclear. “We’re seeing pretty solid demand growth this year, but the big question is what will happen next year,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, which oversees $126 billion. Sergey Frank, chief executive of Russia’s largest shipping company, Sovcomflot, said its net profit has more than tripled this year as cheaper crude keeps fuel costs low and […]

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Oil Bargain Hunting Remains Elusive Game

There’s a welcome whiff of oil industry consolidation in the air. But a gap between buyers and sellers shows there’s hardly a consensus that petroleum prices have hit bottom. Most of the recent action has been in Australia. Santos Ltd. SSLTY 2.92 % , one of Australia’s biggest energy companies, said Thursday that Scepter Partners, backed by Brunei’s oil-rich royalty, offered a 27% premium for the company over Wednesday’s price. This comes after Australian major Woodside Petroleum WOPEY -1.00 % bid for compatriot Oil Search, only to be rebuffed for being too cheap . Santos is also rebuffing Scepter, saying the bid is opportunistic. Scepter’s offer puts a debt-adjusted market value of $11.38 billion on Santos, or $9.14 per barrel of its proven and probable reserves. That is cheaper than Woodside’s offer for Oil Search at the time for $22.74 a barrel or Woodside’s own value of $17.38 a […]

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Iran to Start Oilfield-Bid Process for Investors by End-March

Iran is preparing by the end of March to start soliciting bids from international companies for rights to develop oil fields as the country anticipates the removal of economic sanctions that have hobbled its crude production and exports. The Persian Gulf nation, once OPEC’s second-largest producer, wants to begin organizing bids by the next Iranian calendar year starting March 21, Seyed Mehdi Hosseini, chairman of the Oil Ministry’s Oil Contract Restructuring Committee, said Wednesday in an interview in Tehran. It’s seeking to sign oilfield-development contracts within two years at the latest, he said. Iran’s new oil contracts will allow international companies to invest for 20 years with the option of extending for an additional five, he said. Companies will share in the benefit of an increase in oil prices but must also help bear the risk of a decrease, Hosseini said. Iran, with the world’s fourth-largest reserves of oil, […]

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Assad Finds Chilly Embrace in Moscow Trip

Photo The rebel-held area of Douma, east of Damascus, on Wednesday after an airstrike by Syrian forces was reported. Credit Sameer Al-Doumy/Agence France-Presse — Getty Images WASHINGTON — In the winter of 2012, when the civil war in Syria had already consumed tens of thousands of lives, Vladimir V. Putin , the Russian president, sounded dismissive of Syria’s beleaguered leader, Bashar al-Assad , and unconcerned about his future. Mr. Assad, he said, acidly, had spent more time courting leaders in European capitals than he ever had in Moscow. “We are not that preoccupied with the fate of Assad’s regime,” Mr. Putin said then. Three years later, the two presidents have bound themselves together in an alliance that reflects not only the urgent priority of salvaging the crumbling central government in Syria, but also each man’s eroded standing on the international stage. Mr. Putin’s military has forcefully intervened to shore […]

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Iran Nuclear Deal Wins Tepid Endorsement From Ayatollah Ali Khamenei

Photo Ayatollah Ali Khamenei, Iran’s supreme leader, during a meeting in Tehran on Monday. Credit Office of the Iranian Supreme Leader, via Associated Press TEHRAN — Iran ’s supreme leader on Wednesday publicly endorsed for the first time the July nuclear agreement between Iran and six world powers, state news agencies reported . But the provisional endorsement was accompanied by a warning that Tehran expected all sanctions to be lifted or it would walk away from the deal. The support of the supreme leader, Ayatollah Ali Khamenei , is the final step in an approval process involving the Supreme National Security Council, the Iranian Parliament and the Guardian Council. Iran can now begin carrying out the measures outlined in the agreement, including dismantling thousands of centrifuges used for enrichment and downsizing a heavy water plant so it can no longer produce plutonium. The endorsement was included in a letter […]

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Who Really Controls Iraq? Inside Iran’s Powerful Proxy Armies

When social media began to light up with pictures of Quds Force commander Qassem Soleimani rallying Shiite militiamen and Hezbollah soldiers ahead of Russia and Iran’s joint effort to retake the city of Aleppo, some wondered where all of these fighters came from. After all, even though the IRGC has now all but admitted it sent soldiers to Syria for the offensive, it wasn’t as if the entire Iranian army marched in overnight and if you believe the reports from the frontlines, the ground force marching on Syria’s largest city looks quite a bit different from the depleted SAA which was all but decimated just two months ago. Those who have frequented these pages lately know exactly where those troops came from. Some are Hezbollah fighters and the rest were ordered to the Syrian frontlines from Iraq by Soleimani himself. We predicted this would happen months ago and now […]

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IMF: Oil, conflict create Middle East woes

Conflict and low crude oil prices leading to severe economic contraction in parts of the world that rely heavily on export revenue, the International Monetary Fund reports. File photo by Ahmad Deeb/UPI DUBAI, United Arab Emirates, Oct. 21 (UPI) — Fiscal deficits are mounting for countries in the Middle East, North Africa and Central Asia because of lingering conflict and low oil prices, the IMF said. The International Monetary Fund said the region as a whole should witness stagnant economic growth of around 2.5 percent for 2015. Conflict, the IMF said, is taking a "horrendous" toll on the region and a weak crude oil market is making matters worse. "For the region’s oil exporters, the fall in prices has led to large export revenue losses, amounting to a staggering $360 billion this year alone," Masood Ahmed, the IMF’s regional director, said from Dubai. Crude oil prices spiked briefly in […]

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IMF presses Nigeria to devalue naira currency

AP Photo/Sunday Alamba LAGOS, Nigeria (AP) — The IMF is pressing Nigeria to further devalue its naira currency amid uncertainty over the political and economic outlook for Africa’s biggest oil producer and economy. Analysts said there’s disappointment that President Muhammadu Buhari’s long-awaited Cabinet list – five months in the making and still not finalized – includes no economic stars to guide much-needed reform. "There’s no economist on the (Cabinet) list that can suggest to the government ways to improve revenue generation and how to run the economy," said Garba Kurfi, managing director of APT Securities and Funds. The naira has lost 25 percent of its value in the past year and the stock market plummeted by 20 percent last year and 14 percent this year because of political uncertainty and halved prices for oil that provides most government revenue. Nigeria’s Central Bank devalued the naira by 8 percent in […]

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U.S. Investigates Venezuelan Oil Giant

WASHINGTON—The directors of one of Spain’s leading construction companies were delighted to land an appointment with Rafael Ramírez, the president of Petróleos de Venezuela, to talk about their plans to bid on a $1.5 billion electric-power project for the Venezuelan state oil giant. But when they showed up at the JW Marriott Hotel in Caracas, it was Mr. Ramírez’s cousin, Diego Salazar, who received them in the presidential suite, say two people who attended the 2006 meeting. Mr. Salazar got right to the point, they say: The Spaniards would have to pay at least $150 million in kickbacks to be in the running. “If not,” Mr. Salazar told the businessmen, according to one person, “you should return to the airport.” The executives didn’t bite. But plenty of other vendors were willing to play along on PdVSA projects, say people who worked with the company before Mr. Ramírez’s departure last […]

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Cuba To Drill For Oil In Deep Water Despite Low Prices

Cuba plans to drill exploratory deepwater wells in the Gulf of Mexico by the end of 2016 or beginning of 2017 despite current low oil prices, officials from the state oil monopoly say. CAMARIOCA, Cuba, Oct 21 (Reuters) – Cuba plans to drill exploratory deepwater wells in the Gulf of Mexico by the end of 2016 or beginning of 2017 despite current low oil prices, officials from the state oil monopoly said. Cuba-Petroleo (Cupet) will drill exploratory wells as deep as 7,000 meters (223,000 ft) in waters of up to 3,000 meters in production sharing contracts with Venezuelan state oil company PDVSA and Angola’s Sonangol. "We will initiate a drilling campaign at the end of 2016 or the start of 2017," Osvaldo Lopez, Cupet’s head of exploration, told Reuters on Wednesday. "The essential goal of the new drilling campaign is at least two deep wells. There could be three. […]

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BP Agrees to $10 Billion Deal to Supply LNG to China Huadian

BP Plc agreed to supply liquefied natural gas to China Huadian Corp. in a deal worth as much as $10 billion over two decades. The London-based company will supply as much as 1 million metric tons of LNG annually to the Beijing-based company that operates power stations, according to an e-mailed statement. BP and China National Petroleum Corp., the country’s biggest oil producer, also agreed to jointly explore and produce shale gas in China’s Sichuan basin and retail fuels in the nation, according to a separate statement. The agreements are part of a host of deals signed during Chinese President Xi Jinping’s visit this week to London. Prime Minister David Cameron said Xi would bring more than 30 billion pounds ($46 billion) in deals and investment on his visit. The partnership with CNPC “not only strengthens the relationship between the U.K. and China’s largest energy companies, it further cements […]

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U.S. oil output slide looms as shale firms hit productivity wall

An oil pump jack can be seen in Cisco, Texas, August 23, 2015. Stagnating rig productivity shows U.S. shale oil producers are running out of tricks to pump more with less in the face of crashing prices and points to a slide in output that should help rebalance global markets. Over the 16 months of the crude price rout, production from new wells drilled by each rig has risen about 30 percent as companies refined their techniques, idled slower rigs and shifted crews and high-speed rigs to "sweet spots" with the most oil. Such "high-grading" helped shale oil firms push U.S. output to the loftiest levels in decades even as oil tumbled by half to less than $50 a barrel and firms slashed rig fleets by 60 percent. But recent government and private data show output per rig is now flatlining as the industry reaches the limits of what […]

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The Long Bull Run for Oil Refiners Is Showing Signs of Slowing

An oil refinery in Memphis, Tennessee. The end of the U.S. shale boom is about to claim another victim: oil refiners. Refiners are showing signs of slowing down after an unprecedented rise in U.S. crude production sent them on a five-year bull run. Citigroup Inc. downgraded five refining stocks Wednesday, including a subsidiary of billionaire Carl Icahn’s CVR Energy Inc. Profit margins from turning oil into gasoline and diesel fell last week to the lowest level since 2010, according to data compiled by Bloomberg. Why? As output rose, a ban on most exports left U.S. refiners awash in crude, allowing them to buy it for less than competitors in Europe and Asia. Now that producers have put the brakes on drilling, that advantage is eroding. The change may hurt the bottom line at Exxon Mobil Corp. and Royal Dutch Shell Plc, which report earnings later this month. Refining profits […]

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Canada Dollar Falls Most in 3 Month as Central Bank Cuts Outlook

The Canadian dollar fell the most in three months after the nation’s central bank left interest rates unchanged while cutting its economic growth forecasts, saying the fallout from lower prices for crude oil, one of Canada’s largest exports, will be felt for longer than projected. The currency weakened against most major peers as the Bank of Canada said falling energy investment will hobble the economy through next year. The currency weakness is a reversal from Tuesday when it got a boost from the Oct. 19 election that saw Justin Trudeau’s Liberal Party sweep into power on promises for deficit-funded stimulus spending. "Forecasts for growth are lower, and while not terribly pessimistic, it’s not terribly optimistic either," said Jack Spitz, the managing director for foreign exchange at National Bank of Canada. The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, […]

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Study: Strong Oklahoma quakes caused by industrial activity

TULSA, Okla. (AP) — A sharp rise in earthquakes in Oklahoma in the past 100 years is likely the result of industrial activities in the energy-rich state, such as oil and natural gas production, a new study suggests. The paper by the U.S. Geological Survey, which singled out the state of Oklahoma, was released online this week and will be published in December’s Bulletin of the Seismological Society of America. It concludes that injection of massive amounts of the byproduct of oil and gas production – chemical-laced wastewater – deep into the earth has induced the quakes. The paper dates wastewater injection methods to the 1920s in Oklahoma. The modern-day process that produces the byproduct wastewater is known as fracking, or forcing millions of gallons of water, sand and other additives deep into the ground to free up pockets of natural gas. Both the energy industry and scientists agree […]

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Baker Hughes woes continue

Oil field services company Baker Hughes reports steep decline in business activity in North America, stressing its looking forward to imminent merger with rival Halliburton. Photo by Lilac Mountain/Shutterstock HOUSTON, Oct. 21 (UPI) — Oil field services company Baker Hughes reported a steep decline in revenue from North American operations, stressing its merger with Halliburton was progressing. Companies like Baker Hughes that work in the exploration and production, or upstream, side of the energy sector are facing economic headwinds in an era of historically low oil prices. Baker Hughes said third quarter revenue in North America alone was down 57 percent year-on-year because of "sharply lower activity and unfavorable pricing." In its weekly rig count report, a metric used to gauge the health of the exploration and production sector, Baker Hughes reported the seventh-straight weekly decline in activity in the United States. "In North America, margins declined further driven […]

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Canada’s Trudeau under low-carbon pressure

Liberal leader Justin Trudeau called on to move Canada away from an economy that relies heavily on oil and natural gas. Photo by Heinz Ruckemann/UPI WASHINGTON, Oct. 21 (UPI) — The incoming Liberal government in Canada is called on to move away from an oil-based economy, the Natural Resources Defense Council said. The Liberal Party of Canada defeated the Conservatives in national elections Monday, pushing Prime Minister Stephen Harper ‘s party into the opposition and Justin Trudeau into the leadership position in Ottawa. Anthony Swift, director of the NRDC in Canada, said the incoming administration should move closer to a low-carbon economy for the sake of prosperity . "The new Liberal government in Ottawa has an unprecedented opportunity to move Canada away from the dirty fuels of the past and toward a clean energy future that will bring jobs, prosperity and security for all Canadians," he said in a […]

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Shell to drill in deep Canadian waters

Nova Scotia petroleum regulator gives Shell permit to start drilling in deep regional waters. File photo by James Jones Jr./Shutterstock HALIFAX, Nova Scotia, Oct. 21 (UPI) — An offshore petroleum regulator in Nova Scotia said Dutch supermajor Shell has consent to start an exploratory drilling program in the region’s deep waters. The Canada-Nova Scotia Offshore Petroleum Board said Shell Canada Ltd. has consent for operations about 150 miles off the provincial coast. "After an extensive regulatory review process, Shell Canada has demonstrated to the satisfaction of the CNSOPB that it will be taking all reasonable precautions to protect safety and the environment while carrying out the drilling program," Stuart Pinks, the board’s chief executive officer, said in a statement. Nova Scotia’s government estimates there may be up to 120 trillion cubic feet of natural gas and 8 billion barrels of oil offshore . Shell first acquired six-year exploration licenses […]

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USGS ties quakes to Oklahoma oil production

USGS study finds an increase in seismic activity in Oklahoma linked to oil activities in the state. Photo by Calin Tatu/Shutterstock RESTON, Va., Oct. 21 (UPI) — An increase in seismic activity in Oklahoma since 2009 may be in part related to activity associated with oil production, the U.S. Geological Survey finds. "In Oklahoma, seismicity rates since 2009 far surpass previously observed rates at any time during the 20th century," Susan Hough, a USGS seismologist, said in a statement. "Several lines of evidence further suggest that most of the significant earthquakes in Oklahoma during the 20th century may also have been induced by oil production activities." Energy consultant Wood Mackenzie said Oklahoma shale was on par with the Eagle Ford basin in Texas and the Bakken shale in North Dakota with production expected to pass 1 million barrels of oil equivalent per day by 2020. Oklahoma is the No. […]

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Strong Oklahoma Quakes Linked to Industrial Activity, Study Says

TULSA, Okla.—A sharp rise in earthquakes in Oklahoma in the past 100 years is likely the result of industrial activities in the energy-rich state, such as oil and natural gas production, a new study suggests. The paper by the U.S. Geological Survey, which singled out the state of Oklahoma, was released online this week and will be published in December’s Bulletin of the Seismological Society of America. It concludes that the injection of massive amounts of the byproduct of oil and gas production—chemical-laced wastewater—deep into the earth likely induced the quakes. The paper dates wastewater-injection methods to the 1920s in Oklahoma. The modern-day process that produces the wastewater is known as hydraulic fracturing, or fracking, which forces millions of gallons of water, sand and other additives deep into the ground to free up pockets of natural gas. Both the energy industry and scientists agree that fracking doesn’t directly cause […]

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Texas Oil and Gas Decline in August

Texas C+C The RRC data is always incomplete but if this month’s incomplete data is less than last month’s incomplete data then that’s a pretty good indicator that production this month is down. The EIA data here is only through July. They have Texas production peaking in March at 3,644,000 barrels per day and declining by 197,000 bpd to 3,447,000 bpd in July. Dean C+C Dr. Dean Fantazzini has Texas peaking in March also, at a slightly lower point than the EIA but they both pretty much in agreement by July. Texas crude only, when the final data comes in, will show the peak in March. Dean’s algorithm still has crude only peaking in March but holding on a plateau since then. Texas Condensate Texas condensate peaked, so far, in December. It is unlikely that any month, in the next year or so, will top December for Texas condensate […]

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Baker Hughes Revenues Down 39% Since One Year Ago

Baker Hughes’ revenues for 3Q 2015 are down 39 percent, compared to one year ago. Oilfield services giant Baker Hughes saw revenues drop to $3.8 billion for 3Q 2015, down 39 percent compared to 3Q 2014, and a 5 percent decrease from last quarter. “Compared to the third quarter of 2014, revenue in North America declined 57 percent on sharply lower activity and unfavorable pricing, while actions we have taken to right-size our operational structure resulted in decremental adjusted operation profit margins of 30 percent,” Baker Hughes CEO Martin Craighead said in a company release. A reduction in customer spending is the cause for less drilling in the fourth quarter , Reuters reported. An Evercore analyst report stated that Baker Hughes continues to see a shift in spending, which favors production optimization projects over exploration and development (E&P) work. This will result in further activity and pricing weakness in […]

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Russian minister sees oil prices stuck at $50 “for years”

Russia’s economy minister warned that the nation is facing years of oil prices at about $50 as a sluggish global economy ushers in a long cycle of low commodities prices. The world’s largest energy exporter must continue financial support for non-commodities exports to buoy the nation’s shrinking economy, Alexei Ulyukayev told a conference Wednesday in Moscow. Measures to help growth by encouraging local food production are starting to pay off, according to First Deputy Prime Minister Igor Shuvalov. “We have entered a period of low prices for commodities, a long commodities cycle that’s ongoing and that will continue for a number of years,” Ulyukayev said. “I don’t see any sharp slumps but, relatively speaking, the oil price will be $50, $50 plus for years. Faced with the oil-price weakness and sanctions over the crisis in Ukraine, Russian officials are searching for ways to steer the country out of its […]

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Sounds of War Recede to Background in an Eastern Ukraine City

Continue reading the main story Slide Show Slide Show|10 Photos The New Normal in Mariupol The New Normal in Mariupol CreditBrendan Hoffman for The New York Times MARIUPOL, Ukraine — While his children played a popular Russian card game called “Fool ” on a sand-flecked blanket, beside a razor-wire fence warning “Do Not Enter — Mines,” Sergei Sovyak reflected on what has become of his battered, seaside city. “These days, the war is happening on a kind of political chessboard,” said Mr. Sovyak, a metallurgist. “It has become a conflict in the mind. In reality, in everyday life, there is no war anymore.” There is no doubt that life has changed considerably in this rusting industrial port on the Sea of Azov. Earlier this year, a fierce separatist offensive , backed by Moscow, threatened to overrun the city and create a land bridge connecting Russia with the Crimean Peninsula […]

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Ukraine Sees Signs Truce Can Last as Putin Juggles War and Peace

As Vladimir Putin’s bombing campaign in Syria enters a fourth week, Ukrainian officials are increasingly hopeful the country’s cease-fire with pro-Russian separatists will lead to a lasting peace. The financial penalties the U.S. and EU imposed on Russia for backing the insurgency finally appear to be curbing’s Putin’s appetite for the rebellion, according to Borys Lozhkin, President Petro Poroshenko’s chief of staff. “Putin wants sanctions lifted as soon as possible, so he’s showing readiness to implement Minsk II,” Lozhkin said in an interview in Kiev, referring to the second truce agreement Ukraine reached with rebel leaders and Russia, in neighboring Belarus in February. If the accord holds, Ukraine will meet one of Russia’s key demands — passing constitutional changes giving regions more autonomy — but probably not until December, when Putin’s intentions become more clear, Lozhkin said. “We’ll only know in a month or two if Putin’s readiness for […]

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Oil Prices Flat Ahead of Inventory Data, OPEC

Oil prices wavered between gains and losses Tuesday on uncertainty about how long the global glut of crude will persist. Light, sweet crude for November delivery settled down 34 cents, or 0.7%, at $45.55 a barrel on the New York Mercantile Exchange. The November contract expired at settlement Tuesday. The more actively traded December contract rose a penny to $46.29 a barrel. Traders are looking to the OPEC meeting on Wednesday. Brent, the global benchmark, rose 10 cents, or 0.2%, to $48.71 a barrel on ICE Futures Europe. The market has lacked clear direction in recent weeks as traders weigh near-term signs of a large oversupply of crude oil against expectations that falling U.S. production and growing demand will help bring supply and demand back into balance. Since the start of October, U.S. oil prices have settled up six times and settled down eight times. “It’s just been incredibly […]

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Crude-Oil Stocks Seen Rising by 3.5 Million Barrels

NEW YORK—U. S. crude-oil stocks are expected to show an increase in data due Wednesday from the Energy Department, according to a survey of analysts by The Wall Street Journal. Estimates from 12 analysts surveyed showed that U.S. oil inventories are projected to have risen by 3.5 million barrels, on average, in the week ended Oct. 16. All 12 analysts expect stockpiles to rise. Forecasts range from an increase of 1 million barrels to a gain of 5.3 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EDT Wednesday. Gasoline stockpiles are expected to fall by 900,000 barrels, according to analysts. Ten analysts expect a decline, with two expecting a rise. Estimates range from a drop of 2.9 million barrels to a gain of 2 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 1.3 […]

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Kurds pay out for oil exports

British company Genel Energy announced it received a payment from the Kurdish government for oil exports through Turkey. File photo by Mohammed al Jumaily/UPI LONDON, Oct. 20 (UPI) — British energy company Genel Energy became the latest company working in the Kurdish north of Iraq to announce government payments for exports. Genel, which operates in the Taq Taq oil field in northern Iraq, announced it received a $16.5 million payment from the Kurdish government for exports through a pipeline running north to Turkey. The Kurdish government in Iraq in early August announced it would allocate some of its revenue to international oil companies on a monthly basis to help cover their expenses. The Kurdish north hosts some of the larger oil fields in Iraq and while the Kurdish government said crude oil exports are its principle source of revenue, it said it recognized energy companies operating in the region […]

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Iran to Pay Oil Companies Larger Fees in New 20-Year Contracts

Iran will pay foreign oil companies larger fees than it did under previous buy-back contracts to attract $100 billion of investments needed to rebuild its energy industry. The Persian Gulf state, once OPEC’s second-largest crude producer, will also offer 20-year contracts on oil and natural gas projects, Roknoddin Javadi, managing director of state-run National Iranian Oil Co., said in an interview in Tehran. “What’s been announced so far looks like an attractive contract — no doubt it’s a vast improvement on the buy-back contracts,’’ said Robin Mills, a Dubai-based consultant who worked formerly for Royal Dutch Shell Plc on projects in Iran from 1998 to 2003. Iran, holder of the fourth-largest reserves of oil, is preparing to boost its output once world powers remove economic sanctions that choked off investment in its oil and gas industry. Oil exports fell to an average 1.4 million barrels a day last year […]

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Saudi Arabia oil reserves reach record level

In late summer 2015, commercial oil reserves of Saudi Arabia reached 326.6 million barrels, thus setting a new record for the world’s largest oil supplier since 2002. Thus, the level of oil reserves in July amounted to 320.2 million barrels, while oil exports fell from 7.28 million barrels per day in July to 7 million barrels a day in August, Bloomberg says. According to expert Mohamed Ramadi, a decline in oil exports from Saudi Arabia reflects the realities of present-day market. Oil production in Saudi Arabia declined from 10.36 million barrels per day in July to 10.27 million barrels a day in August , Pravda.Ru reports with reference to RIA Novosti. In September, Saudi Arabia reported the production of 10.23 million barrels a day. In June, the country reached its peak in oil production since 1980 with 10.56 million barrels a day. pravda.ru

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Russia Makes an Impact in Syrian Battle for Control of Aleppo

Photo A Syrian opposition fighter near Aleppo last weekend during clashes with forces loyal to President Bashar al-Assad. Credit Thaer Mohammed/Agence France-Presse — Getty Images ISTANBUL — Government forces across Syria — including army units, fighters with the Lebanese Shiite group Hezbollah and other loyalist militias — were trying to advance Tuesday on more than half a dozen front lines, with close air support in places from Russian warplanes and helicopters. Syrian Army troops and allied militias inched their way closer to the contested city of Aleppo, as a slowly developing offensive stretched into its fifth day. To the east of the city, forces loyal to President Bashar al-Assad appeared to be pushing to retake a military airport surrounded by militants with the Islamic State, also known as ISIS or ISIL. There are indications that the most prominent members of a new pro-government alliance — Russia and Iran — […]

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Saudis Risk Draining Financial Assets in 5 Years, IMF Says

Riyadh Photographer: Waseem Obaidi/Bloomberg Saudi Arabia may run out of financial assets needed to support spending within five years amid the drop in oil prices if the government maintains current policies, the International Monetary Fund said, underscoring the need of measures to cut the nation’s budget deficit. The same is true of Bahrain and Oman in the six-member Gulf Cooperation Council, the IMF said in a report on Wednesday. Kuwait, Qatar and the United Arab Emirates have relatively more financial assets that could support them for more than 20 years, the Washington-based lender said. Saudi authorities are already planning spending cuts as the world’s biggest oil exporter seeks to shore up its public finances. Officials have repeatedly said that the kingdom’s economy, the Arab world’s biggest, is strong enough to weather the plunge in crude prices as it did in similar crises, when its finances were under more strain. […]

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Venezuelan government sets $40/b target price for oil in 2016 budget

Venezuela has set a target price of $40/barrel for its export basket of crude and products for 2016, Minister of Economy, Finance and Public Bank Rodolfo Marco Torres said Tuesday at a presentation of the national budget for next year. The 2016 target price compares to the $60/b target the Venezuelan government put in place for the country’s 2015 budget. "Excess oil supply has resulted in the sustained fall in oil prices," Torres said. "Considering the trends in the international oil market, the 2016 budget has been estimated [at] an average export price of the Venezuelan oil basket [of] $40/b," Torres said. Venezuela has seen its income from oil exports fall by 50% due to the sharp decline in global oil prices. Article continues below… Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial […]

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Venezuela to Keep Making International Debt Payments, Govt Says

Venezuela not only has the funds needed to make payments to bond investors due this month and next, but intends to keep making timely payments on its obligations, Finance Minister Rodolfo Marco Torres said Tuesday. “The government will continue faithfully honoring national and international debt commitments, demonstrating the solidity and reliability of the Venezuelan state,” he said during his presentation of the 2016 budget and debt bills to the National Assembly broadcast on state television. Venezuela has the roughly $3.5 billion ready to make the principal and interest payments due on its Petrobono 2015 this month and the PDVSA 2017 bond next month, Marco Torres, who is also economy vice president, said. Venezuela’s debt composition at year-end 2014 stood at 68 percent domestic and 32 percent international, he said, and by year-end 2015, the country will have made $13 billion in debt payments. Marco Torres was said to have […]

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BHP Billiton Pares Petroleum Spending Plans

The Anglo-Australian mining and energy company said Wednesday petroleum capital expenditure was set to total US$2.9 billion for the year through June, a 6% cut from its prior guidance. That came after oil-and-gas production slipped 4% on-year to 64.5 million barrels of oil equivalent in the first quarter to Sept. 30, although BHP stuck with a target of 237 million barrels for the year. Chief Executive Andrew Mackenzie said the company continued to reduce costs in its onshore U.S. and conventional energy operations and would still meet its output targets with US$200 million less capital investment. Still, Mr. Mackenzie said the company had picked up oil acreage in the Beagle basin in Western Australia and in the Western Gulf of Mexico and BHP would continue to invest in the business. Across BHP’s operations, production guidance for the full-year was maintained after another rise in iron-ore output , flat coal […]

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